Small contractors get $11.5b in Region Four road contracts

Small contractors at the Arthur Chung Conference Centre (DPI photo)
Small contractors at the Arthur Chung Conference Centre (DPI photo)

The government has allocated $11.5 billion for the upgrade of 947 community roads in Region Four, the Department of Public Information (DPI) said in a release on Friday.

In total, 673 contracts were awarded to small contractors to carry out the upgrades.

The contracts were signed during a ceremony at the Arthur Chung Conference Centre (ACCC) on Friday.

Small contractors gathered at the Arthur Chung Conference Centre (DPI photo)

Vice President Bharrat Jagdeo highlighted the significance of these projects in the city, emphasising that thousands of residents will reap the benefits, the release said.

He cast the initiative as an important opportunity for contractors to elevate their lives and grow within the industry.

“You have to sometimes take a chance with new contractors and nurture them along…because we have such a vast amount of work to do and we have limited capacity in some areas,” he stated.

The Vice President further explained that while the government could have awarded larger contracts to a single contractor, it is important to expand opportunities to create a wider pool of contractors.

“So, whilst we are creating more opportunities for people, we expect if you get paid you will do a good piece of work,” Jagdeo urged, noting that poorly executed projects would not be tolerated.

According to Jagdeo, since resuming office, the government has completed over 4,000 community roads across Guyana with this new initiative promising to continue that trend.

Minister of Public Works, Juan Edghill, announced that the contract signings will continue in phases. The remaining contracts will be signed this week.

The contracts are scheduled for completion by December, as stipulated in the agreements. Edghill warned, “Every man Jack, and every woman Jane has got to finish before December 15”, he said, according to DPI

Other requirements were outlined for contractors, including mandatory testing of road strength to meet a standard of 4,500 PSI—an essential measure of concrete durability.

Contractors whose work fails to meet this benchmark will be required to redo the project or face contract cancellation without compensation, DPI said.

To ensure transparency, contractors and engineers will be required to familiarise themselves with the local communities before beginning work. Residents will also be engaged in monitoring the projects.

Subcontracting or transferring contracts to third parties, will lead to immediate disqualification, DPI said.

Present at the signing ceremony were the Minister of Local Government and Regional Development, Sonia Parag, Minister of Tourism, Oneidge Walrond, Minister within the Ministry of Public Works, Deodat Indar, and Minister within the Office of the Prime Minister, Kwame McCoy.

A similar award of contracts occurred in Berbice last week.

DPI said on October 8th that 389 small contractors in Region Six will benefit from $6.9 billion in contracts for the upgrading of 400 roads across the county.

The agreements were inked between the government and the contractors at the offices of the Regional Democratic Council (RDC) in New Amsterdam, Berbice.

Delivering remarks at the ceremony Jagdeo said that an additional $7 billion in contracts will be tendered for larger contractors with the capacity to handle more extensive projects.

He stated that the rapid expansion of public sector projects means that more contractors will be required for the successful implementation of the government’s plans. As such government intends to assemble a larger pool of contractors nationwide.

Almost 2,000 new contractors have entered the field since August 2020, DPI said.

The Vice President acknowledged that integrating these new companies into the bidding process has not been without challenges. Concerns have been raised about multiple family-owned businesses bidding for contracts and in turn, this has led to an uneven distribution of opportunities.

“If we go that route, we won’t be able to broaden the contractor core and secondly, when people find this out, you don’t get the blame, we [government] get the blame. It’s the first thing they are saying is the PPP/C is tolerating this and it is something that we are very intolerant of”, he asserted. 

In an effort to address these challenges, government has introduced a rating system to allow small contractors to secure deals without being subjected to a competitive bidding process, DPI explained.

Meanwhile, Minister of Public Works, Juan Edghill, explained that the new process will expand the scope of opportunities for more Guyanese to benefit from the country’s booming infrastructural developments.